8.2.3 Constitutional Change Since 2015: Major Reforms and Scottish Devolution (Scottish Referendum Context)

1. Further Devolution to Scotland (Post-Scottish Referendum)

Background and Context

• Scottish Independence Referendum 2014: Held on 18 September 2014, where 55.3% voted against independence.
• Smith Commission: Established by the UK government to deliver more powers to the Scottish Parliament following the referendum.

Key Changes and Legislation

Scotland Act 2016

• Legislative Powers: Expanded the legislative competence of the Scottish Parliament in areas such as onshore oil and gas extraction, transport, and consumer advocacy.
• Fiscal Powers:
  • Income Tax: Full control over rates and bands of non-savings and non-dividend income tax.
  • VAT Assignment: The first 10% of VAT revenues raised in Scotland to be assigned to the Scottish Government.
  • Welfare Powers: Powers over certain welfare benefits, including the ability to create new benefits and top-up existing ones.
• Recognition of Permanence: The Act included a clause stating that the Scottish Parliament and Scottish Government are permanent parts of the UK's constitutional arrangements.

Impact

• Increased Autonomy: Significant step towards greater self-governance for Scotland, enhancing its ability to tailor policies to local needs.
• Fiscal Responsibility: Greater financial independence meant increased accountability for economic decisions and revenue generation.

Examples

• Income Tax Variations: In 2017, Scotland introduced different income tax rates and bands from the rest of the UK, demonstrating its newly acquired powers.
• Welfare Reforms: The Scottish Government introduced measures such as the Scottish Child Payment, illustrating its use of welfare powers.

2. The European Union (Withdrawal) Act 2018

Background and Context

• Brexit Referendum 2016: On 23 June 2016, the UK voted to leave the European Union, with 51.9% voting 'Leave'.

Key Provisions

• Repeal of the European Communities Act 1972: Formally ended the supremacy of EU law in the UK.
• Retention of EU Law: Transposed existing EU law into UK domestic law to ensure legal continuity post-Brexit.
• Ministerial Powers: Gave ministers powers to amend retained EU law to ensure it functions correctly after Brexit (Henry VIII clauses).

Impact

• Legal Continuity: Ensured a smooth transition by maintaining consistency in the legal framework during and after Brexit.
• Parliamentary Sovereignty: Reaffirmed the principle of parliamentary sovereignty by removing the primacy of EU law.

Examples

• Amendments to EU Regulations: Numerous statutory instruments have been laid before Parliament to amend retained EU law for post-Brexit functionality.

3. The European Union (Withdrawal Agreement) Act 2020

Background and Context

• Withdrawal Agreement: Negotiated between the UK and EU, setting out the terms of the UK's departure.

Key Provisions

• Implementation of the Withdrawal Agreement: Incorporated the Withdrawal Agreement into UK law, including provisions on citizens' rights, the financial settlement, and the Northern Ireland Protocol.
• Transition Period: Established a transition period until 31 December 2020, during which EU law continued to apply in the UK.
• Northern Ireland Protocol: Created a special arrangement for Northern Ireland to avoid a hard border with the Republic of Ireland.

Impact

• Citizens' Rights: Protected the rights of EU citizens in the UK and UK citizens in the EU.
• Economic Adjustments: Allowed businesses and individuals time to adapt to new arrangements.
• Northern Ireland Stability: Aimed to maintain peace and stability by preventing a hard border on the island of Ireland.

Examples

• Settled Status Scheme: Implemented to allow EU citizens in the UK to apply for settled status, ensuring their rights post-Brexit.

4. Further Devolution to Wales

Background and Context

• Ongoing Devolution Process: Building on previous devolution settlements to increase the legislative and financial autonomy of Wales.

Key Changes and Legislation

Wales Act 2017

• Reserved Powers Model: Changed the legislative framework to a reserved powers model, similar to Scotland, where the Welsh Assembly can legislate on any matter not explicitly reserved to the UK Parliament.
• Tax Powers: Devolved powers over income tax rates and bands, land transaction tax, and landfill disposals tax.
• Transport and Energy: Additional powers over transport (e.g., speed limits and road user charging) and energy (e.g., granting licenses for onshore oil and gas extraction).

Impact

• Enhanced Autonomy: Provided greater clarity and scope for the Welsh Government to legislate and govern in accordance with local needs.
• Financial Independence: Increased responsibility for tax policy and revenue generation.

Examples

• Income Tax Powers: In 2019, Wales started setting its rates of income tax, demonstrating the practical use of its new fiscal powers.
• Land Transaction Tax: Replaced Stamp Duty Land Tax in Wales, illustrating the use of devolved tax powers.

Conclusion

Since 2015, significant constitutional changes have been implemented under various governments, focusing on further devolution and the impact of Brexit. The Scotland Act 2016 and Wales Act 2017 provided substantial increases in legislative and financial autonomy for Scotland and Wales, respectively. The European Union (Withdrawal) Act 2018 and the European Union (Withdrawal Agreement) Act 2020 facilitated the UK's transition out of the EU, ensuring legal continuity and addressing the complexities of Brexit, particularly concerning Northern Ireland. These changes reflect ongoing efforts to adapt the UK's constitutional framework in response to evolving political and social contexts.